In a statement released today (22 August), UPM said the mills’ production will be curtailed in accordance with the change negotiations held in March.
“We are adjusting our production as a normal measure in line with market and cost developments, focusing on profitability,” said Marko Sundqvist, vice president of Pulp Operations Finland.
The shutdown of the Kaukas pulp mill will start on 9 September and the shutdown of the Kymi pulp mill on 23 September. The shutdowns are estimated to last for three weeks.
Maintenance work will be carried out during part of the shutdown period, but temporary layoffs are possible.
UPM’s pulp mills in Pietarsaari and in Uruguay will continue to run at full capacity and deliveries to customers will continue normally during the shutdowns, the company said.
Separately, in a statement yesterday UPM said it has now closed its Hürth newsprint mill and one fine paper machine at Nordland Papier, both in Germany.
In May UPM Communication Papers said it would permanently close the Hürth mill and shut down one of the fine paper machines – PM 3 – at Nordland Papier in Dörpen (PM 3).
The respective participation processes with the employee representatives have now been concluded and the number of jobs affected is 338.
Graphic paper production in Hürth, near Cologne, is expected to end on 31 August and at Nordland Papier PM 3 latest by the end of 2024, resulting in annual reductions of 330,000 tonnes of newsprint paper capacity and 280,000 tonnes of uncoated fine paper capacity.
“In cooperation with the workers council, we have engaged in a constructive dialogue with the aim of developing responsible solutions for our employees,” said Antti Hermonen, SVP, Operations at UPM Communication Papers.
“The thoughtful and collaborative approach taken by all parties during the consultations resulted in socially responsible solutions for our people.”
UPM confirmed that the financial impact estimate of the closures remains materially unchanged from its announcement in May.
UPM’s 2023 results, posted in February 2024, reported a “very challenging” year, with sales down 11% to €10.46bn (£8.88bn), while operating profits fell to €608m from €1.97bn the prior year.
